Posted by Jim on February 27, 2001 at 15:38:31:
Gary!
If you tell the lender that there has been a transfer of beneficial interest in the trust…What’s the point?
It not only violates the whole purpose of that trust, but it violates the lenders’ DOS Clause!!!
Jim
Beneficial Interest in Trust - Posted by Lonnie Turner
Posted by Lonnie Turner on February 27, 2001 at 11:35:56:
Going to drop off all necessary paperwork to seller today to get them signed & notarized. My question is when do I get them to sign off on & notarize the assignment of beneficial interest form. Do I wait a couple of days after filing the deed at the auditor’s office. The reason is that they ask if there has been a change in the beneficial interest. If there has been a change I have to pay 1.53% excise tax which I cannot afford on this deal so it would be better to deed the property to trust then record the deed & then a couple of weeks later have the seller assign me their interest in the trust. Also delaying the transfer of the interest would protect the seller if the mortgae company call them and ask if they are then beneficiaries they could just say yes because they have not assign it to me yet. Ant thoughts,suggestions,criticism, woul be appreciated.
P.S. This is my first Subject To & I am nervous as He**.
Re: Beneficial Interest in Trust - Posted by Bud Branstetter
Posted by Bud Branstetter on February 27, 2001 at 18:43:03:
Get everything notarized and signed at the same time. Unless you are in a state where they charge the transfer tax even when put your own property in trust you don’t have a problem. The assignment of beneficial interest is private and between you, the seller and the trustee.
Sooner or later you will learn the Pactrust approach then you won’t be afraid of the borrower saying to the lender “I am still a beneficiary of the trust”
Re: Beneficial Interest in Trust - Posted by Jim
Posted by Jim on February 27, 2001 at 14:10:09:
Lonnie.
As far as they or anyone else is concerned (There has not been a change in the beneficial interest)! Only you and the seller realize this so therefore you just tell them that there has not been a change in the beneficial interest.
Telling them or anyone else would defeat the purpose of the Land Trust they created thus causing a violation to the DOS clause contained in the note you are taking subject to.
That assignment of beneficial interest is between you and the seller.
Hope this helps
Jim
Not so. - Posted by Gary
Posted by Gary on February 27, 2001 at 14:44:34:
You MUST be forthcoming if the Lender inquires about the interest in the Trust. Don’t withold information or lie to the Lender. That IS fraud.
Gary
Not exactly . . . - Posted by William bronchick
Posted by William bronchick on February 27, 2001 at 16:19:08:
There has been court cases that say lying to the lender when you are not the borrower (in this case, you would be the investor) is NOT fraud because the only the borrower has the obligation to tell the lender the truth!